S6060-B
STATE OF NEW YORK
________________________________________________________________________
S. 6060--B A. 9560--B
SENATE - ASSEMBLY
January 21, 2004
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend chapter 101 of the laws of 2004 relating to the suspen-
sion and the effectiveness of exemptions of certain clothing and foot-
wear from sales and compensating use taxes imposed by or pursuant to
the authority of article 28 or 29 of the tax law and to amend chapter
62 of the laws of 2003 amending the general business law and other
laws relating to implementing the state fiscal plan for the 2003-2004
state fiscal year, in relation to the effectiveness thereof, and to
amend the tax law, in relation to exemptions from sales and compensat-
ing use taxes for certain clothing and footwear and to authorize a
county or city to repeal its election of the year-round clothing and
footwear exemption from its sales and compensating use taxes or to
elect to provide such exemption, effective June 1, 2005 (Part A); to
amend the public housing law, in relation to providing a credit
against income tax for persons or entities investing in low-income
housing (Part B); to amend the tax law, in relation to certain tax
surcharges (Part C); to amend the tax law and chapter 389 of the laws
of 1997 amending the tax law, the banking law, and other laws relating
to the 1997-1998 fiscal plan, in relation to extending certain tax
credits and exemptions for alternative fuel vehicles (Part D); to
amend the tax law, in relation to changing the fixed dollar minimum
tax for a taxpayer based on the taxpayer's gross payroll (Part E); to
amend the tax law, in relation to modifying hearing rights upon
certain notice and demands for taxes due and owing and providing for
notice and demand procedures for the sales, compensating use and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12134-03-4
S. 6060--B 2 A. 9560--B
miscellaneous taxes (Part F); to amend chapter 298 of the laws of 1985
amending the tax law relating to the franchise tax on banking corpo-
rations imposed by the tax law, authorized to be imposed by any city
having a population of one million or more by chapter 772 of the laws
of 1966 and imposed by the administrative code of the city of New York
and relating to other provisions of the tax law, chapter 883 of the
laws of 1975 and the administrative code of the city of New York which
relates to such franchise tax, to amend chapter 817 of the laws of
1987 amending the tax law and the environmental conservation law,
constituting the business tax reform and rate reduction act of 1987,
and to amend chapter 525 of the laws of 1988 amending the tax law and
the administrative code of the city of New York relating to the impo-
sition of taxes in the city of New York, in relation to the effective-
ness of certain provisions of such chapters; and to amend the tax law,
in relation to permitting certain banking corporations otherwise
subject to tax under article 32 of the tax law to make an election to
be taxed under article 9-A of such law; and to amend the administra-
tive code of the city of New York, in relation to permitting certain
banking corporations otherwise subject to tax under subchapter 3 of
chapter 6 of title 11 of the administrative code of the city of New
York to be taxed under subchapter 2 of such code (Part G); to amend
the tax law, in relation to the taxation of gains from the sale of
shares in a cooperative housing corporation by a nonresident of the
state (Part H); to amend the tax law, in relation to changing the date
interest begins to run under article 26 of such law for certain late
estate tax payments, changing the calculation of the estate tax for
estates with property both in New York and in another state, and
repealing article 10 of such law relating to taxable transfers (Part
I); to amend the tax law, in relation to reducing the tax on aviation
fuel businesses under article 13-A thereof (Part J); and to amend the
alcoholic beverage control law, in relation to sales for off-premises
consumption; and to repeal certain provisions of such law relating
thereto (Part K); to amend the tax law, in relation to exempting parts
used exclusively to maintain, repair, overhaul or rebuild aircraft or
services associated therewith from the sales and compensating use tax;
and providing for the repeal of such provisions upon the expiration
thereof (Part L); to amend the tax law, in relation to providing
refunds and credits of sales and compensating use taxes imposed by
article 28 of such law and pursuant to the authority of article 29
thereof and paid with respect to certain vessels used to provide local
transit service and certain related property and services (Part M); to
amend the tax law, in relation to compliance with sales and compensat-
ing use tax obligations by certain contractors, subcontractors and
their affiliates (Part N); to amend the general municipal law in
relation to extending the effectiveness of empire zones (Part O); to
amend the tax law, in relation to providing tax credits for certain
costs incurred in film and television productions and providing for
the repeal of such provisions upon expiration thereof (Part P); to
amend the tax law, in relation to wraparound mortgages and supple-
mental mortgages in the city of New York (Part Q); to amend the tax
law and the administrative code of the city of New York, in relation
to crediting tax overpayments against outstanding tax debt owed to the
city of New York (Part R); to amend the administrative code of the
city of New York, in relation to disallowing, for purposes of the
general corporation tax, banking corporation tax and unincorporated
business income tax, certain excess deductions with respect to sport
S. 6060--B 3 A. 9560--B
utility vehicles (Part S); to amend the administrative code of the
city of New York, in relation to payment of real property taxes by
electronic funds transfer (Part T); to amend the administrative code
of the city of New York, in relation to setting interest rates for
overpayments of the New York city unincorporated business tax and the
tax on foreign and alien insurers (Part U); to amend the real property
tax law, in relation to a rebate of real property taxes on certain
residential real property in a city having a population of one
million or more and to amend the tax law, in relation to authorizing
any city having a population of one million or more to provide an
earned income tax credit against the personal income tax of such city
(Part V); and to amend the general business law, in relation to rental
vehicle protections and authorized charges that are in addition to the
rental rate (Part W); to amend chapter 405 of the laws of 1999 amend-
ing the real property tax law relating to improving the administration
of the school tax relief (STAR) program and other laws, in relation to
the lottery game of Quick Draw (Part X); and to amend chapter 349 of
the laws of 1982 amending the multiple dwelling law relating to the
legalization of interim multiple dwellings in cities of over one
million, in relation to extending provisions thereof and to amend the
multiple dwelling law, in relation to owner compliance (Part Y)
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation
2 which are necessary to implement the state fiscal plan for the 2004-2005
3 state fiscal year. Each component is wholly contained within a Part
4 identified as Parts A through Y. The effective date for each particular
5 provision contained within such Part is set forth in the last section of
6 such Part. Any provision in any section contained within a Part, includ-
7 ing the effective date of the Part, which makes reference to a section
8 "of this act", when used in connection with that particular component,
9 shall be deemed to mean and refer to the corresponding section of the
10 Part in which it is found. Section three of this act sets forth the
11 general effective date of this act.
12 PART A
13 Section 1. Section 1 of part A of chapter 101 of the laws of 2004
14 relating to the suspension and the effectiveness of exemptions of
15 certain clothing and footwear from sales and compensating use taxes
16 imposed by or pursuant to the authority of article 28 or 29 of the tax
17 law and to amend chapter 62 of the laws of 2003 amending the general
18 business law and other laws relating to implementing the state fiscal
19 plan for the 2003-04 state fiscal year, in relation to the effectiveness
20 thereof, as amended by section 1 of part F of chapter 120 of the laws of
21 2004, is amended to read as follows:
22 Section 1. Suspension of state and local year-round clothing and foot-
23 wear exemptions. Notwithstanding any provision of law to the contrary:
24 (a) During the period commencing June 1, 2004, and ending [September
25 30, 2004] May 31, 2005, the effectiveness of paragraph 30 of subdivision
26 (a) of section 1115 and the provisions of sections 1107, 1109, 1110 and
27 1210 of the tax law providing or authorizing exemptions of clothing and
28 footwear, as such term is defined in paragraph 15 of subdivision (b) of
S. 6060--B 4 A. 9560--B
1 section 1101 of the tax law, from sales and compensating use taxes
2 imposed by or pursuant to the authority of article 28 or 29 of the tax
3 law shall be suspended and such suspension of effectiveness shall tempo-
4 rarily stay the exemption of such clothing and footwear from any such
5 taxes during such period other than exemptions provided in or pursuant
6 to section three or four of part F of [the] chapter 120 of the laws of
7 2004 [which amended this subdivision] and other than exemptions provided
8 in or pursuant to section three or four of part A of the chapter of the
9 laws of 2004 which amended this subdivision.
10 (b) The expiration and repeal of the provisions of paragraph 30 of
11 subdivision (a) of section 1115 and of subdivision (k) of section 1210
12 of the tax law provided for in section 5 of part I3 of chapter 62 of the
13 laws of 2003, as amended by section 2 of part [A] F of chapter [101] 120
14 of the laws of 2004, shall take effect [September 30, 2004] May 31,
15 2005.
16 (c) During the period commencing June 1, 2004, and ending [September
17 30, 2004] May 31, 2005, the effectiveness of the portion of any local
18 law, ordinance or resolution of a county, city or school district elect-
19 ing to provide for the exemption described in paragraph 30 of subdivi-
20 sion (a) of section 1115 of the tax law after May 31, 2004, shall be
21 suspended, so that there shall not be any exemption of such clothing and
22 footwear from the taxes imposed by such a local law, ordinance or resol-
23 ution or by section 1107 of the tax law during such period other than
24 exemptions provided in or pursuant to section three or four of part F of
25 [the] chapter 120 of the laws of 2004 [which amended this subdivision]
26 and other than exemptions provided in or pursuant to section three or
27 four of part A of the chapter of the laws of 2004 which amended this
28 subdivision.
29 § 2. Section 5 of part I3 of chapter 62 of the laws of 2003 amending
30 the general business law and other laws relating to implementing the
31 state fiscal plan for the 2003-2004 state fiscal year, as amended by
32 section 2 of part F of chapter 120 of the laws of 2004, is amended to
33 read as follows:
34 § 5. This act shall take effect immediately; provided, however, that
35 section one of this act shall take effect June 1, 2003, and shall apply
36 in accordance with the applicable transitional provisions of section
37 1106 of the tax law; and provided further that the amendments to para-
38 graph 30 of subdivision (a) of section 1115 and to subdivision (k) of
39 section 1210 of the tax law made by sections one and two of this act
40 shall expire [September 30, 2004] May 31, 2005, when upon such date the
41 provisions of such sections one and two of this act shall be deemed
42 repealed and any local law, ordinance or resolution enacted pursuant to
43 section three of this act shall be deemed to be repealed therewith,
44 provided, however, a local law, ordinance or resolution which is enacted
45 pursuant to subdivision (a) of such section three of this act to provide
46 the exemption in paragraph 30 of subdivision (a) of section 1115 of the
47 tax law as amended by section one of this act shall or shall not apply
48 as of the effective date of such section one of this act or pursuant to
49 subdivision (b) of such section three of this act to provide for such
50 amended exemption effective on such date and which explicitly elects to
51 continue to grant such exemption effective immediately after [September
52 30, 2004] May 31, 2005, shall not be deemed repealed.
53 § 3. Paragraph 30 of subdivision (a) of section 1115 of the tax law,
54 as amended by section 3 of part F of chapter 120 of the laws of 2004, is
55 amended to read as follows:
S. 6060--B 5 A. 9560--B
1 (30) During the seven-day [period] periods commencing on August thir-
2 ty-first, two thousand four, and ending on September sixth, two thousand
3 four, known as Labor day and commencing on January thirty-first, two
4 thousand five and ending on February sixth, two thousand five, clothing
5 and footwear for which the receipt or consideration given or contracted
6 to be given is less than one hundred ten dollars per article of cloth-
7 ing, per pair of shoes or other articles of footwear or per item used or
8 consumed to make or repair such clothing and which becomes a physical
9 component part of such clothing.
10 § 4. Local rejection or election of one-week clothing and footwear
11 exemption period. Notwithstanding any provision of state or local law,
12 ordinance or resolution to the contrary:
13 (a)(1) Action by localities which provided the Fall, 2004, temporary
14 exemption. A county or city imposing sales and compensating use taxes
15 pursuant to the authority of subdivision (a) of section 1210, 1210-A,
16 1210-B or 1210-C of the tax law or in which the taxes imposed by section
17 1107 of the tax law are in effect, which had provided the one-week
18 temporary clothing and footwear exemption period commencing August 31,
19 2004, pursuant to chapter 120 of the laws of 2004, acting through its
20 local legislative body, is hereby authorized and empowered to adopt a
21 resolution, in the form set forth in paragraph two of this subdivision,
22 to reject the one-week exemption period for clothing and footwear
23 commencing January 31, 2005, as described in paragraph 30 of subdivision
24 (a) of section 1115 of the tax law as amended by section three of this
25 act, from its sales and compensating use taxes or from such taxes
26 imposed by such section 1107 of the tax law in a city having a popu-
27 lation of one million or more. Such a resolution shall be effective
28 only if it is adopted exactly as set forth in such paragraph two of this
29 subdivision and such county or city adopts it by December 3, 2004, mails
30 a certified copy of it to the commissioner of taxation and finance by
31 certified mail by such date and otherwise complies with the requirements
32 of subdivisions (d) and (e) of section 1210 of the tax law. Such a
33 resolution adopted by a county or a city (other than a city having a
34 population of one million or more) in compliance with this section shall
35 be deemed to amend such county's or city's local law, ordinance or
36 resolution imposing its sales and compensating use taxes. A resolution
37 adopted by a city having a population of one million or more in compli-
38 ance with this section shall be deemed to amend section 1107 of the tax
39 law as if an act amending such section 1107 had been duly passed by the
40 state legislature and approved by the governor. If such county or city
41 does not adopt the resolution provided for in this subdivision to reject
42 such one-week exemption period, in the manner prescribed herein, then
43 such one-week exemption shall apply to such taxes imposed by such county
44 or city or in such city having a population of one million or more.
45 (2) Form of resolution.
46 Be it enacted by the (county or city) of (insert locality's name) as
47 follows:
48 Section one. The (county or city) of (insert locality's name) hereby
49 rejects the clothing and footwear exemption for the period commencing on
50 January 31, 2005, and ending on February 6, 2005.
51 Section 2. This resolution shall take effect December 3, 2004.
52 (b)(1) Action by localities which had not provided the Fall 2004,
53 temporary exemption. A county or city imposing sales and compensating
54 use taxes pursuant to the authority of subdivision (a) of section 1210,
55 1210-A, 1210-B or 1210-C of the tax law, which had not provided the
56 one-week temporary clothing and footwear exemption period commencing
S. 6060--B 6 A. 9560--B
1 August 31, 2004, pursuant to chapter 120 of the laws of 2004, acting
2 through its local legislative body, is hereby authorized and empowered
3 to adopt a resolution, in the form set forth in paragraph two of this
4 subdivision, to elect the one-week exemption period for clothing and
5 footwear commencing January 31, 2005, as described in paragraph 30 of
6 subdivision (a) of section 1115 of the tax law as amended by section
7 three of this act from its sales and compensating use taxes. Such a
8 resolution shall be effective only if it is adopted exactly as set forth
9 in such paragraph two of this subdivision and such county or city adopts
10 it by December 3, 2004, mails a certified copy of it to the commissioner
11 of taxation and finance by certified mail by such date and otherwise
12 complies with the requirements of subdivisions (d) and (e) of section
13 1210 of the tax law. Such a resolution adopted by a county or a city in
14 compliance with this section shall be deemed to amend such county's or
15 city's local law, ordinance or resolution imposing its sales and compen-
16 sating use taxes. If such county or city does not adopt the resolution
17 provided for in this subdivision to elect such one-week exemption peri-
18 od, in the manner prescribed herein, then such one-week exemption shall
19 not apply to such taxes imposed by such county or city.
20 (2) Form of resolution.
21 Be it enacted by the (county or city) of (insert locality's name) as
22 follows:
23 Section one. The (county or city) of (insert locality's name) hereby
24 elects the clothing and footwear exemption for the period commencing on
25 January 31, 2005, and ending on February 6, 2005.
26 Section 2. This resolution shall take effect December 3, 2004, and
27 shall apply in accordance with applicable transitional provisions of the
28 Tax Law.
29 (c) Subdivision (g) of section 1109 of the tax law shall apply if a
30 county or city located in the metropolitan commuter transportation
31 district provides the exemption authorized by this section or by section
32 4 of part F of chapter 120 of the laws of 2004.
33 § 5. The provisions of sections three and four of this act, section
34 1107 of the tax law and paragraph 1 of subdivision (a) of section 1210
35 of the tax law, and of any resolution enacted pursuant thereto, taken
36 separately or together, shall not be construed by any person or any
37 court or other entity as either (i) a failure or refusal to continue to
38 impose the taxes imposed by section 1107 of the tax law, as such taxes
39 may from time to time be amended, or (ii) as a reduction in the rate at
40 which such taxes are imposed. After sections three and four of this act
41 shall have become a law, the taxes imposed by such section 1107 of the
42 tax law on receipts from retail sales of and consideration given or
43 contracted to be given for purchases of clothing and footwear shall
44 (except as provided pursuant to section four of this act for any period
45 set forth therein if a city of one million or more provides the
46 exemption in the manner described in such section) continue to apply,
47 persons liable for such taxes on purchases of such clothing and footwear
48 shall continue to be liable for such taxes, persons required to collect
49 such taxes on such clothing and footwear shall continue to be required
50 to collect and pay over such taxes to the commissioner of taxation and
51 finance, such commissioner shall continue to be required to certify such
52 taxes on such clothing and footwear as provided by article 28 of the tax
53 law and section 92-d of the state finance law and the state comptroller
54 shall continue to be required to deposit, appropriate and pay over such
55 taxes as required by such section 92-d of the state finance law, in the
S. 6060--B 7 A. 9560--B
1 manner and to the extent as if sections three and four of this act had
2 not become a law.
3 § 6. Local election or repeal of year-round exemption, effective June
4 1, 2005. Notwithstanding any provision of state or local law, ordinance
5 or resolution to the contrary:
6 (a) Election. A county or city imposing sales and compensating use
7 taxes pursuant to the authority of subdivision (a) of section 1210,
8 1210-A, 1210-B or 1210-C of the tax law, acting through its local legis-
9 lative body, is hereby authorized and empowered to adopt or amend a
10 local law, ordinance or resolution, and a city in which the taxes
11 imposed by section 1107 of the tax law are in effect, acting through its
12 local legislative body, is hereby authorized and empowered to adopt or
13 amend a resolution, to elect, effective June 1, 2005, the year-round
14 clothing and footwear exemption in effect on that date as described in
15 paragraph 30 of subdivision (a) of section 1115 of the tax law from its
16 sales and compensating use taxes or from taxes imposed in a city having
17 a population of one million or more by such section 1107 of the tax law.
18 Such a local law, ordinance or resolution shall be effective only if it
19 is in the exact form prepared by the commissioner of taxation and
20 finance and such county or city adopts it by March 1, 2005, mails a
21 certified copy of it to the commissioner of taxation and finance by
22 certified mail by such date and otherwise complies with the requirements
23 of subdivisions (d) and (e) of section 1210 of the tax law. A resolution
24 adopted by a city having a population of one million or more in compli-
25 ance with this section shall be deemed to amend such section 1107 of the
26 tax law as if an act amending such section 1107 had been duly passed by
27 the state legislature and approved by the governor.
28 (b) Repeal. A county or city imposing sales and compensating use taxes
29 pursuant to the authority of subdivision (a) of section 1210, 1210-A,
30 1210-B or 1210-C of the tax law, acting through its local legislative
31 body, is hereby authorized and empowered to adopt or amend a local law,
32 ordinance or resolution, and a city in which the taxes imposed by
33 section 1107 of the tax law are in effect, acting through its local
34 legislative body, is hereby authorized and empowered to adopt or amend a
35 resolution, to repeal, effective June 1, 2005, the year-round clothing
36 and footwear exemption in effect on that date as described in paragraph
37 30 of subdivision (a) of section 1115 of the tax law from its sales and
38 compensating use taxes or from taxes imposed in a city having a popu-
39 lation of one million or more by such section 1107 of the tax law, which
40 exemption it elected to have been effective on June 1, 2004, pursuant to
41 the authority of part I3 of chapter 62 of the laws of 2003. Such a
42 local law, ordinance or resolution shall be effective only if it is in
43 the exact form prepared by the commissioner of taxation and finance and
44 such county or city adopts it by March 1, 2005, mails a certified copy
45 of it to the commissioner of taxation and finance by certified mail by
46 such date and otherwise complies with the requirements of subdivisions
47 (d) and (e) of section 1210 of the tax law. A resolution adopted by a
48 city having a population of one million or more in compliance with this
49 section shall be deemed to amend section 1107 of the tax law as if an
50 act amending such section 1107 had been duly passed by the state legis-
51 lature and approved by the governor.
52 (c) Nothing in this section shall be construed to require a county or
53 city which had elected the year-round clothing and footwear exemption
54 effective June 1, 2004, to take any action if it wants such "permanent"
55 exemption to take effect on June 1, 2005.
S. 6060--B 8 A. 9560--B
1 § 7. This act shall take effect immediately and shall apply in accord-
2 ance with the applicable transitional provisions of sections 1106 and
3 1217 of the tax law, provided however that the amendments to paragraph
4 30 of subdivision (a) of section 1115 of the tax law made by section
5 three of this act shall not affect the expiration of such paragraph and
6 shall be deemed to expire therewith.
7 PART B
8 Section 1. Subdivision 4 of section 22 of the public housing law, as
9 amended by section 1 of part M of chapter 85 of the laws of 2002, is
10 amended to read as follows:
11 4. Statewide limitation. The aggregate dollar amount of credit which
12 the commissioner may allocate to eligible low-income buildings under
13 this article shall be [four] six million dollars. The limitation
14 provided by this subdivision applies only to allocation of the aggregate
15 dollar amount of credit by the commissioner, and does not apply to
16 allowance to a taxpayer of the credit with respect to an eligible low-
17 income building for each year of the credit period.
18 § 2. This act shall take effect immediately.
19 PART C
20 Section 1. Subdivision 1 of section 183-a of the tax law, as amended
21 by section 1 of part D of chapter 20 of the laws of 2001, is amended to
22 read as follows:
23 1. The term "corporation" as used in this section shall include an
24 association, within the meaning of paragraph three of subsection (a) of
25 section seventy-seven hundred one of the internal revenue code (includ-
26 ing a limited liability company), a publicly traded partnership treated
27 as a corporation for purposes of the internal revenue code pursuant to
28 section seventy-seven hundred four thereof and any business conducted by
29 a trustee or trustees wherein interest or ownership is evidenced by
30 certificates or other written instruments. Every corporation, joint-
31 stock company or association formed for or principally engaged in the
32 conduct of canal, steamboat, ferry (except a ferry company operating
33 between any of the boroughs of the city of New York under a lease grant-
34 ed by the city), express, navigation, pipe line, transfer, baggage
35 express, omnibus, taxicab, telegraph, or telephone business, or formed
36 for or principally engaged in the conduct of two or more such busi-
37 nesses, and every corporation, joint-stock company or association formed
38 for or principally engaged in the conduct of a railroad, palace car,
39 sleeping car or trucking business or formed for or principally engaged
40 in the conduct of two or more of such businesses and which has made an
41 election pursuant to subdivision ten of section one hundred eighty-three
42 of this article, and every other corporation, joint-stock company or
43 association principally engaged in the conduct of a transportation or
44 transmission business, except a corporation, joint-stock company or
45 association formed for or principally engaged in the conduct of a rail-
46 road, palace car, sleeping car or trucking business or formed for or
47 principally engaged in the conduct of two or more of such businesses and
48 which has not made the election provided for in subdivision ten of
49 section one hundred eighty-three of this article, and except a corpo-
50 ration, joint-stock company or association principally engaged in the
51 conduct of aviation (including air freight forwarders acting as princi-
52 pal and like indirect air carriers) and except a corporation principally
S. 6060--B 9 A. 9560--B
1 engaged in providing telecommunication services between aircraft and
2 dispatcher, aircraft and air traffic control or ground station and
3 ground station (or any combination of the foregoing), at least ninety
4 percent of the voting stock of which corporation is owned, directly or
5 indirectly, by air carriers and which corporation's principal function
6 is to fulfill the requirements of (i) the federal aviation adminis-
7 tration (or the successor thereto) or (ii) the international civil
8 aviation organization (or the successor thereto), relating to the exist-
9 ence of a communication system between aircraft and dispatcher, aircraft
10 and air traffic control or ground station and ground station (or any
11 combination of the foregoing) for the purposes of air safety and naviga-
12 tion and except a corporation, joint-stock company or association which
13 is liable to taxation under [section one hundred eighty-six of this
14 article or] article thirty-two of this chapter, shall pay for the privi-
15 lege of exercising its corporate franchise, or of doing business, or of
16 employing capital, or of owning or leasing property in the metropolitan
17 commuter transportation district in such corporate or organized capaci-
18 ty, or of maintaining an office in such district, a tax surcharge for
19 all or any part of its years commencing on or after January first, nine-
20 teen hundred eighty-two but ending before December thirty-first, two
21 thousand [five] nine, which tax surcharge, in addition to the tax
22 imposed by section one hundred eighty-three of this article, shall be
23 computed at the rate of eighteen per centum of the tax imposed under
24 such section one hundred eighty-three for such years or any part of such
25 years ending before December thirty-first, nineteen hundred eighty-three
26 after the deduction of any credits otherwise allowable under this arti-
27 cle, and at the rate of seventeen per centum of the tax imposed under
28 such section for such years or any part of such years ending on or after
29 December thirty-first, nineteen hundred eighty-three after the deduction
30 of any credits otherwise allowable under this article; provided, howev-
31 er, that such rates of tax surcharge shall be applied only to that
32 portion of the tax imposed under section one hundred eighty-three of
33 this article after the deduction of any credits otherwise allowable
34 under this article which is attributable to the taxpayer's business
35 activity carried on within the metropolitan commuter transportation
36 district as so determined in the manner prescribed by the rules and
37 regulations promulgated by the commissioner; and provided, further, that
38 the tax surcharge imposed by this section shall not be imposed upon any
39 taxpayer for more than [two hundred seventy-six] three hundred twenty-
40 four months.
41 § 2. Subdivision 1 of section 184-a of the tax law, as amended by
42 section 2 of part D of chapter 20 of the laws of 2001, is amended to
43 read as follows:
44 1. The term "corporation" as used in this section shall include an
45 association, within the meaning of paragraph three of subsection (a) of
46 section seventy-seven hundred one of the internal revenue code (includ-
47 ing a limited liability company), and a publicly traded partnership
48 treated as a corporation for purposes of the internal revenue code
49 pursuant to section seventy-seven hundred four thereof. Every corpo-
50 ration, joint-stock company or association formed for or principally
51 engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
52 ny operating between any of the boroughs of the city of New York under a
53 lease granted by the city), express, navigation, pipe line, transfer,
54 baggage express, omnibus, taxicab, telegraph or local telephone busi-
55 ness, or formed for or principally engaged in the conduct of two or more
56 such businesses, and every corporation, joint-stock company or associ-
S. 6060--B 10 A. 9560--B
1 ation formed for or principally engaged in the conduct of a surface
2 railroad, whether or not operated by steam, subway railroad, elevated
3 railroad, palace car, sleeping car or trucking business or principally
4 engaged in the conduct of two or more such businesses and which has made
5 an election pursuant to subdivision ten of section one hundred eighty-
6 three of this article, and every other corporation, joint-stock company
7 or association formed for or principally engaged in the conduct of a
8 transportation or transmission business (other than a telephone busi-
9 ness) except a corporation, joint-stock company or association formed
10 for or principally engaged in the conduct of a surface railroad, whether
11 or not operated by steam, subway railroad, elevated railroad, palace
12 car, sleeping car or trucking business or principally engaged in the
13 conduct of two or more such businesses and which has not made the
14 election provided for in subdivision ten of section one hundred eighty-
15 three of this article, and except a corporation, joint-stock company or
16 association principally engaged in the conduct of aviation (including
17 air freight forwarders acting as principal and like indirect air carri-
18 ers) and except a corporation principally engaged in providing telecom-
19 munication services between aircraft and dispatcher, aircraft and air
20 traffic control or ground station and ground station (or any combination
21 of the foregoing), at least ninety percent of the voting stock of which
22 corporation is owned, directly or indirectly, by air carriers and which
23 corporation's principal function is to fulfill the requirements of (i)
24 the federal aviation administration (or the successor thereto) or (ii)
25 the international civil aviation organization (or the successor there-
26 to), relating to the existence of a communication system between
27 aircraft and dispatcher, aircraft and air traffic control or ground
28 station and ground station (or any combination of the foregoing) for the
29 purposes of air safety and navigation and except a corporation, joint-
30 stock company or association which is liable to taxation under [section
31 one hundred eighty-six of this article or] article thirty-two of this
32 chapter, shall pay for the privilege of exercising its corporate fran-
33 chise, or of doing business, or of employing capital, or of owning or
34 leasing property in the metropolitan commuter transportation district in
35 such corporate or organized capacity, or of maintaining an office in
36 such district, a tax surcharge for all or any part of its taxable years
37 commencing on or after January first, nineteen hundred eighty-two, but
38 ending before December thirty-first, two thousand [five] nine, which tax
39 surcharge, in addition to the tax imposed by section one hundred eight-
40 y-four of this article, shall be computed at the rate of eighteen per
41 centum of the tax imposed under such section one hundred eighty-four for
42 such taxable years or any part of such taxable years ending before
43 December thirty-first, nineteen hundred eighty-three after the deduction
44 of any credits otherwise allowable under this article, and at the rate
45 of seventeen per centum of the tax imposed under such section for such
46 taxable years or any part of such taxable years ending on or after
47 December thirty-first, nineteen hundred eighty-three after the deduction
48 of any credits otherwise allowable under this article; provided, howev-
49 er, that such rates of tax surcharge shall be applied only to that
50 portion of the tax imposed under section one hundred eighty-four of this
51 article after the deduction of any credits otherwise allowable under
52 this article which is attributable to the taxpayer's business activity
53 carried on within the metropolitan commuter transportation district; and
54 provided, further, that the tax surcharge imposed by this section on
55 corporations, joint-stock companies and associations formed for or prin-
56 cipally engaged in the conduct of telephone or telegraph business shall
S. 6060--B 11 A. 9560--B
1 be computed in accordance with this subdivision and paragraph (c) of
2 subdivision two of this section as if the three-quarters of one per
3 centum rate of tax provided for in subdivision one of section one
4 hundred eighty-four of this article were applicable to such telephone
5 and telegraph businesses for taxable years commencing on or after Janu-
6 ary first, nineteen hundred eighty-five and ending on or before December
7 thirty-first, nineteen hundred eighty-nine; and provided, further, that
8 the tax surcharge imposed by this section shall not be imposed upon any
9 taxpayer for more than [two hundred seventy-six] three hundred twenty-
10 four months. Provided, however, that for taxable years beginning in two
11 thousand and thereafter, for purposes of this subdivision the tax
12 imposed under section one hundred eighty-four of this article shall be
13 deemed to have been imposed at the rate of three-quarters of one
14 percent, except that in the case of a corporation, joint-stock company
15 or association which has made an election pursuant to subdivision ten of
16 section one hundred eighty-three of this article, for purposes of this
17 subdivision the tax imposed under section one hundred eighty-four of
18 this article shall be deemed to have been imposed at the rate of six-
19 tenths of one percent.
20 The term "local telephone business" shall have the same meaning as
21 such term is used in section one hundred eighty-four of this article.
22 The term "telecommunication services" shall have the meaning ascribed to
23 such term in section one hundred eighty-six-e of this article.
24 § 3. Subdivision 1 of section 186-c of the tax law, as amended by
25 section 3 of part D of chapter 20 of the laws of 2001, paragraph (b) as
26 amended by section 1 of part S of chapter 85 of the laws of 2002, is
27 amended to read as follows:
28 1. (a) (1) Every utility doing business in the metropolitan commuter
29 transportation district shall pay a tax surcharge, in addition to the
30 tax imposed by section one hundred eighty-six-a of this article, for all
31 or any parts of its taxable years commencing on or after January first,
32 nineteen hundred eighty-two but ending before December thirty-first, two
33 thousand [five] nine, to be computed at the rate of eighteen per centum
34 of the tax imposed under section one hundred eighty-six-a of this arti-
35 cle for such taxable years or any part of such taxable years ending
36 before December thirty-first, nineteen hundred eighty-three after the
37 deduction of any credits otherwise allowable under this article, and at
38 the rate of seventeen per centum of the tax imposed under such section
39 for such taxable years or any part of such taxable years ending on or
40 after December thirty-first, nineteen hundred eighty-three after the
41 deduction of credits otherwise allowable under this article except any
42 utility credit provided for by article thirteen-A of this chapter;
43 provided, however, that such rates of tax surcharge shall be applied
44 only to that portion of the tax imposed under section one hundred eight-
45 y-six-a of this article after the deduction of credits otherwise allow-
46 able under this article, except any utility credit provided for by arti-
47 cle thirteen-A of this chapter, which is attributable to the taxpayer's
48 gross income or gross operating income from business activity carried on
49 within the metropolitan commuter transportation district; and provided,
50 further, that the tax surcharge imposed by this section shall not be
51 imposed upon any taxpayer for more than [two hundred seventy-six] three
52 hundred twenty-four months.
53 (2) Provided however, that commencing January first, two thousand, in
54 the case of the tax imposed under paragraph (a) of subdivision one of
55 section one hundred eighty-six-a of this article (relating to providers
56 of telecommunications services) such tax surcharge shall be calculated
S. 6060--B 12 A. 9560--B
1 as if the tax imposed under section one hundred eighty-six-a of this
2 article were imposed at a rate of three and one-half percent.
3 (b) In addition to the surcharge imposed by [subdivision] paragraph
4 (a) of this [section] subdivision, there is hereby imposed a surcharge
5 on the gross receipts from telecommunication services relating to the
6 metropolitan commuter transportation district at the rate of seventeen
7 percent of the state tax rate under section one hundred eighty-six-e of
8 this article for all or part of taxable years commencing on and after
9 January first, nineteen hundred ninety-five but ending before December
10 thirty-first, two thousand [five] nine. All the definitions and other
11 provisions of section one hundred eighty-six-e of this article shall
12 apply to the tax imposed by this paragraph with such modification and
13 limitation as may be necessary (including substituting the words "metro-
14 politan commuter transportation district" for "state" where appropriate)
15 in order to adapt the language of such section one hundred eighty-six-e
16 of this article to the surcharge imposed by this paragraph within such
17 metropolitan commuter transportation district so as to include (1) any
18 intra-district telecommunication services, except any telecommunication
19 services the gross receipts from which are subject to tax under subpara-
20 graph four of this paragraph, (2) any inter-district telecommunication
21 services which originate or terminate in such district and are charged
22 to a service address therein regardless of where the amounts charged for
23 such services are billed or ultimately paid, except any telecommuni-
24 cations services the gross receipts from which are subject to tax under
25 subparagraph four of this paragraph, (3) as apportioned to such
26 district, private telecommunication services, except any telecommuni-
27 cation services the gross receipts from which are subject to tax under
28 subparagraph four of this paragraph, and (4) mobile telecommunications
29 service provided by a home service provider where the place of primary
30 use is within such metropolitan commuter transportation district.
31 Provided however, commencing October first, nineteen hundred ninety-
32 eight such tax surcharge shall be calculated as if the tax imposed under
33 section one hundred eighty-six-e of this article were imposed at a rate
34 of three and one-half percent.
35 § 4. Subdivision 1 of section 209-B of the tax law, as amended by
36 section 5 of part D of chapter 20 of the laws of 2001, is amended to
37 read as follows:
38 1. For the privilege of exercising its corporate franchise, or of
39 doing business, or of employing capital, or of owning or leasing proper-
40 ty in a corporate or organized capacity, or of maintaining an office in
41 the metropolitan commuter transportation district, for all or any part
42 of its taxable year, there is hereby imposed on every corporation, other
43 than a New York S corporation, subject to tax under section two hundred
44 nine of this article, or any receiver, referee, trustee, assignee or
45 other fiduciary, or any officer or agent appointed by any court, who
46 conducts the business of any such corporation, for the taxable years
47 commencing on or after January first, nineteen hundred eighty-two but
48 ending before December thirty-first, two thousand [five] nine, a tax
49 surcharge, in addition to the tax imposed under section two hundred nine
50 of this article, to be computed at the rate of eighteen per centum of
51 the tax imposed under such section two hundred nine for such taxable
52 years or any part of such taxable years ending before December thirty-
53 first, nineteen hundred eighty-three after the deduction of any credits
54 otherwise allowable under this article, and at the rate of seventeen per
55 centum of the tax imposed under such section for such taxable years or
56 any part of such taxable years ending on or after December thirty-first,
S. 6060--B 13 A. 9560--B
1 nineteen hundred eighty-three after the deduction of any credits other-
2 wise allowable under this article; provided, however, that such rates of
3 tax surcharge shall be applied only to that portion of the tax imposed
4 under section two hundred nine of this article after the deduction of
5 any credits otherwise allowable under this article which is attributable
6 to the taxpayer's business activity carried on within the metropolitan
7 commuter transportation district; and provided, further, that the tax
8 surcharge imposed by this section shall not be imposed upon any taxpayer
9 for more than [two hundred seventy-six] three hundred twenty-four
10 months. Provided however, that for taxable years commencing on or after
11 July first, nineteen hundred ninety-eight, such surcharge shall be
12 calculated as if the tax imposed under section two hundred ten of this
13 article were imposed under the law in effect for taxable years commenc-
14 ing on or after July first, nineteen hundred ninety-seven and before
15 July first, nineteen hundred ninety-eight.
16 § 5. Subsection 1 of section 1455-B of the tax law, as amended by
17 section 6 of part D of chapter 20 of the laws of 2001, is amended to
18 read as follows:
19 1. For the privilege of exercising its franchise or doing business in
20 the metropolitan commuter transportation district in a corporate or
21 organized capacity, there is hereby imposed on every taxpayer subject to
22 tax under this article, other than a New York S corporation, for the
23 taxable years commencing on or after January first, nineteen hundred
24 eighty-two but ending before December thirty-first, two thousand [five]
25 nine, a tax surcharge, in addition to the tax imposed under section
26 fourteen hundred fifty-one of this article, at the rate of eighteen per
27 centum of the tax imposed under such section fourteen hundred fifty-one
28 of this article, for such taxable years or any part of such taxable
29 years ending before December thirty-first, nineteen hundred eighty-three
30 after the deduction of any credits otherwise allowable under this arti-
31 cle, and at the rate of seventeen per centum of the tax imposed under
32 such section for such taxable years or any part of such taxable years
33 ending on or after December thirty-first, nineteen hundred eighty-three
34 after the deduction of any credits otherwise allowable under this arti-
35 cle; provided however, that such rates of tax surcharge shall be applied
36 only to that portion of the tax imposed under section fourteen hundred
37 fifty-one of this article after the deduction of any credits otherwise
38 allowable under this article which is attributable to the taxpayer's
39 business activity carried on within the metropolitan commuter transpor-
40 tation district; and provided, further, that the tax surcharge imposed
41 by this section shall not be imposed upon any taxpayer for more than
42 [two hundred seventy-six] three hundred twenty-four months. Provided
43 however, that for taxable years commencing on or after July first, two
44 thousand, such surcharge shall be calculated as if the rate of the basic
45 tax computed under subsection (a) of section fourteen hundred fifty-five
46 of this article was nine percent.
47 § 6. Subdivision (a) of section 1505-a of the tax law, as amended by
48 section 5 of part H3 of chapter 62 of the laws of 2003, paragraph 2 as
49 amended by section 1 of part Z of chapter 686 of the laws of 2003, is
50 amended to read as follows:
51 (a) (1) Every domestic insurance corporation and every foreign or
52 alien insurance corporation, and every life insurance corporation
53 described in subdivision (b) of section fifteen hundred one of this
54 article, for the privilege of exercising its corporate franchise, or of
55 doing business, or of employing capital, or of owning or leasing proper-
56 ty in the metropolitan commuter transportation district in a corporate
S. 6060--B 14 A. 9560--B
1 or organized capacity, or of maintaining an office in the metropolitan
2 commuter transportation district, for all or any part of its taxable
3 years commencing on or after January first, nineteen hundred eighty-two,
4 but ending before December thirty-first, two thousand [five] nine,
5 except corporations specified in subdivision (c) of section fifteen
6 hundred twelve of this article, shall annually pay, in addition to the
7 taxes otherwise imposed by this article, a tax surcharge on the taxes
8 imposed under this article after the deduction of any credits otherwise
9 allowable under this article as allocated to such district. Such taxes
10 shall be allocated to such district for purposes of computing such tax
11 surcharge upon taxpayers subject to tax under subdivision (b) of section
12 fifteen hundred ten of this article by applying the methodology, proce-
13 dures and computations set forth in subdivisions (a) and (b) of section
14 fifteen hundred four of this article, except that references to terms
15 denoting New York premiums, and total wages, salaries, personal service
16 compensation and commissions within New York shall be read as denoting
17 within the metropolitan commuter transportation district and terms
18 denoting total premiums and total wages, salaries, personal service
19 compensation and commissions shall be read as denoting within the state.
20 If it shall appear to the commissioner that the application of the meth-
21 odology, procedures and computations set forth in such subdivisions (a)
22 and (b) does not properly reflect the activity, business or income of a
23 taxpayer within the metropolitan commuter transportation district, then
24 the commissioner shall be authorized, in the commissioner's discretion,
25 to adjust such methodology, procedures and computations for the purpose
26 of allocating such taxes by:
27 (A) excluding one or more factors therein;
28 (B) including one or more other factors therein, such as expenses,
29 purchases, receipts other than premiums, real property or tangible
30 personal property; or
31 (C) any other similar or different method which allocates such taxes
32 by attributing a fair and proper portion of such taxes to the metropol-
33 itan commuter transportation district. The commissioner from time to
34 time shall publish all rulings of general public interest with respect
35 to any application of the provisions of the preceding sentence. The
36 commissioner may promulgate rules and regulations to further implement
37 the provisions of this section.
38 (2) Such taxes shall be allocated to such district for purposes of
39 computing such tax surcharge upon taxpayers subject to tax under section
40 fifteen hundred two-a of this article pursuant to a fraction, the denom-
41 inator of which shall be the direct premiums subject to tax under
42 section fifteen hundred ten of this article, and the numerator of which
43 shall be the direct premiums subject to tax under section fifteen
44 hundred ten of this article that are written on risks located or resi-
45 dent in the metropolitan commuter transportation district, including
46 premiums written, procured or received in the metropolitan commuter
47 transportation district on business that cannot be specifically assigned
48 as located or resident in an area of New York state outside the metro-
49 politan commuter transportation district, or in another state or states;
50 provided, however, in the case of special risk premiums, the numerator
51 shall include only those premiums written, procured or received in the
52 metropolitan commuter transportation district on property or risks
53 located or resident in the metropolitan commuter transportation
54 district. If it shall appear to the commissioner that the application of
55 the methodology, procedures and computations set forth in this paragraph
56 does not properly reflect the activity, business or income of a taxpayer
S. 6060--B 15 A. 9560--B
1 within the metropolitan commuter transportation district, then the
2 commissioner shall be authorized, in the commissioner's discretion, to
3 adjust such methodology, procedures and computations for the purpose of
4 allocating such taxes by: (A) excluding the factor therein and including
5 one or more other factors such as expenses, purchases, receipts other
6 than premiums, real property or tangible personal property; or (B) any
7 other similar or different method which allocates such taxes by attri-
8 buting a fair and proper portion of such taxes to the metropolitan
9 commuter transportation district. The commissioner from time to time
10 shall publish all rulings of general public interest with respect to any
11 application of the provisions of the preceding sentence. The commission-
12 er may promulgate rules and regulations to further implement the
13 provisions of this section.
14 (3) Such tax surcharge shall be computed at the rate of eighteen per
15 centum of the taxes imposed under sections fifteen hundred one and
16 fifteen hundred ten of this article as limited by section fifteen
17 hundred five of this article, as allocated to such district, for such
18 taxable years or any part of such taxable years ending before December
19 thirty-first, nineteen hundred eighty-three after the deduction of any
20 credits otherwise allowable under this article, at the rate of seventeen
21 per centum of the taxes imposed under such sections as limited by
22 section fifteen hundred five of this article, as allocated to such
23 district, for such taxable years or any part of such taxable years
24 ending on or after December thirty-first, nineteen hundred eighty-three
25 and before January first, two thousand three after the deduction of any
26 credits otherwise allowable under this article, and at the rate of
27 seventeen per centum of the taxes imposed under sections fifteen hundred
28 one, fifteen hundred two-a, and fifteen hundred ten of this article, as
29 limited or otherwise determined by subdivision (a) or (b) of section
30 fifteen hundred five of this article, as allocated to such district, for
31 such taxable years or any part of such taxable years ending after Decem-
32 ber thirty-first, two thousand two after the deduction of any credits
33 otherwise allowable under this article; provided, however, that the tax
34 surcharge imposed by this section shall not be imposed upon any taxpayer
35 for more than [two hundred seventy-six] three hundred twenty-four
36 months. Provided however, that for taxable years commencing on or after
37 July first, two thousand, and in the case of taxpayers subject to tax
38 under section fifteen hundred two-a of this article, for taxable years
39 of such taxpayers beginning on or after July first, two thousand and
40 before January first, two thousand three, such surcharge shall be calcu-
41 lated as if (i) the rate of the tax computed under paragraph one of
42 subdivision (a) of section fifteen hundred two of this article was nine
43 percent and (ii) the rate of the limitation on tax set forth in section
44 fifteen hundred five of this article for domestic, foreign and alien
45 insurance corporations except life insurance corporations was two and
46 six-tenths percent.
47 § 7. This act shall take effect immediately.
48 PART D
49 Section 1. Subdivisions 3, 4, 5, 6 and 9 of section 187-b of the tax
50 law, subdivisions 3, 4 and 6 as added by section 127 of part A of chap-
51 ter 389 of the laws of 1997, subdivision 5 and paragraph (e) of subdivi-
52 sion 6 as added, subdivision 6 as renumbered and subdivision 9 as
53 amended by chapter 597 of the laws of 2002, are amended to read as
54 follows:
S. 6060--B 16 A. 9560--B
1 3. Clean-fuel vehicle property. The credit under this section for
2 clean-fuel vehicle property shall equal sixty percent of the cost of any
3 such property
4 (a) for which a deduction is allowed under section one hundred seven-
5 ty-nine-A of the internal revenue code (determined without regard to the
6 limitations prescribed in paragraph one of subsection (b) of such
7 section or the election referred to in subsection (e) of such section
8 with respect to section one hundred seventy-nine of such code), but not
9 including clean-fuel vehicle property relating to a qualified hybrid
10 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
11 of subsection (p) of section six hundred six of this chapter, and
12 (b) which is installed in or manufactured as part of a motor vehicle
13 which is registered in this state,
14 (c) provided, however, the credit with respect to any such vehicle
15 shall not exceed five thousand dollars per vehicle for vehicles with a
16 gross vehicle weight rating of fourteen thousand pounds or less and ten
17 thousand dollars per vehicle for all other vehicles.
18 4. Clean-fuel vehicle refueling property. The credit under this
19 section for clean-fuel vehicle refueling property shall equal fifty
20 percent of the cost of any such property
21 (a) which is located in this state and
22 (b) for which a deduction is allowed under section one hundred seven-
23 ty-nine-A of the internal revenue code (determined without regard to the
24 limitations prescribed in paragraph two of subsection (b) of such
25 section or the election referred to in subsection (e) of such section
26 with respect to section one hundred seventy-nine of such code), but not
27 including clean-fuel refueling property relating to a qualified hybrid
28 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
29 of subsection (p) of section six hundred six of this chapter.
30 5. Qualified hybrid vehicles. The credit under this section for quali-
31 fied hybrid vehicles shall equal two thousand dollars per vehicle regis-
32 tered in this state[; provided, however, that such vehicle may not qual-
33 ify for both the credit under this subdivision and the clean-fuel
34 vehicle property credit permitted by subdivision three of this section].
35 6. Definitions. (a) The term "electric vehicle" means a qualified
36 electric vehicle within the meaning of subsection (c) of section thirty
37 of the internal revenue code.
38 (b) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
39 refueling property" mean any such property which is qualified within the
40 meaning of subsections (c) and (d), respectively, of section one hundred
41 seventy-nine-A of the internal revenue code, but such terms shall not
42 include clean-fuel vehicle property or clean-fuel vehicle refueling
43 property relating to a qualified hybrid vehicle as such vehicle is
44 defined in subparagraph (E) of paragraph six of subsection (p) of
45 section six hundred six of this chapter.
46 (c) The term "clean-fuel" means natural gas, liquefied petroleum gas,
47 hydrogen, electricity, and any other fuel which is at least [eight-five]
48 eighty-five percent, singly or in combination, methanol, ethanol, any
49 other alcohol, or ether.
50 (d) The term "incremental cost" shall mean the excess of the cost of
51 an electric vehicle over the cost of a gasoline-powered vehicle which is
52 similar in size and style.
53 (e) The term "qualified hybrid vehicle" shall have the same meaning as
54 provided for under subparagraph (E) of paragraph six of subsection (p)
55 of section six hundred six of this chapter.
S. 6060--B 17 A. 9560--B
1 9. Termination. This section shall not apply to property placed in
2 service in taxable years beginning after December thirty-first, two
3 thousand [three] four.
4 § 2. Subparagraph (ii) of paragraph (a) of subdivision 24 of section
5 210 of the tax law, as amended by section 1 of part J of chapter 63 of
6 the laws of 2000, is amended to read as follows:
7 (ii) For purposes of this subdivision, the term "governmental unit"
8 means the United States, any state or political subdivision thereof, any
9 possession of the United States, or any agency or instrumentality of any
10 of the foregoing. For taxable years beginning in two thousand through
11 two thousand [three] four, in the case of electric vehicles, or clean-
12 fuel vehicle property which is installed in or manufactured as part of a
13 motor vehicle, where such vehicles are sold or first leased during the
14 taxable year to a governmental unit, a credit shall be allowed, to be
15 computed as hereinafter provided, against the tax imposed by this arti-
16 cle, provided that (A) with respect to such vehicles first sold or
17 leased to a governmental unit during taxable years beginning in two
18 thousand and two thousand one, the taxpayer executes a written contract
19 with such governmental unit on or before December thirty-first, nineteen
20 hundred ninety-nine for such sale or lease of such vehicles, and (B) as
21 a result of the production, manufacture or installation activities
22 relating to such vehicles, at least twenty-five new full-time jobs,
23 excluding those of general executive officers, are created in this
24 state. The total amount of credit for both electric vehicles and clean-
25 fuel vehicle property allowable to a taxpayer under this subparagraph
26 for taxable years beginning in two thousand and two thousand one, taken
27 in the aggregate, shall not exceed two million five hundred thousand
28 dollars, and with respect to such vehicles first sold or leased to a
29 governmental unit during taxable years beginning in two thousand two
30 [and], two thousand three and two thousand four, the amount of credit
31 for both electric vehicles and clean-fuel vehicle property shall not
32 exceed two million five hundred thousand in the case of each of such
33 years two thousand two [and], two thousand three and two thousand four.
34 § 3. Paragraphs (c), (d), (e), (f) and (i) of subdivision 24 of
35 section 210 of the tax law, paragraph (c) as amended by section 1 of
36 part R of chapter 407 of the laws of 1999, paragraph (d) as added by
37 section 128 of part A of chapter 389 of the laws of 1997, paragraph (e)
38 and subparagraph (v) of paragraph (f) as added, paragraph (f) as relet-
39 tered and paragraph (i) as amended by chapter 597 of the laws of 2002,
40 and paragraph (f) as added by section 40 of part A of chapter 389 of the
41 laws of 1997, are amended to read as follows:
42 (c) Clean-fuel vehicle property. The credit under this subdivision for
43 clean-fuel vehicle property shall equal sixty percent of the cost of any
44 such property
45 (i) for which a deduction is allowed under section one hundred seven-
46 ty-nine-A of the internal revenue code (determined without regard to the
47 limitations prescribed in paragraph one of subsection (b) of such
48 section or the election referred to in subsection (e) of such section
49 with respect to section one hundred seventy-nine of such code or, in the
50 case of clean-fuel vehicle property which is installed in or manufac-
51 tured as part of a motor vehicle sold or leased to a governmental unit,
52 without regard to paragraph five of subsection (e) of such section inso-
53 far as it relates to property used by governmental units), but not
54 including clean-fuel vehicle property relating to a qualified hybrid
55 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
56 of subsection (p) of section six hundred six of this chapter, and
S. 6060--B 18 A. 9560--B
1 (ii) which is installed in or manufactured as part of a motor vehicle
2 which is registered in this state or, in the case of clean-fuel vehicle
3 property which is installed in or manufactured as part of a motor vehi-
4 cle sold or leased to a governmental unit, the installation or manufac-
5 ture of which takes place in this state,
6 (iii) provided, however, the credit with respect to any such vehicle
7 shall not exceed five thousand dollars per vehicle for vehicles with a
8 gross vehicle weight rating of fourteen thousand pounds or less and ten
9 thousand dollars per vehicle for all other vehicles.
10 (d) Clean-fuel vehicle refueling property. The credit under this
11 subdivision for clean-fuel vehicle refueling property shall equal fifty
12 percent of the cost of any such property
13 (i) which is located in this state and
14 (ii) for which a deduction is allowed under section one hundred seven-
15 ty-nine-A of the internal revenue code (determined without regard to the
16 limitations prescribed in paragraph two of subsection (b) of such
17 section or the election referred to in subsection (e) of such section
18 with respect to section one hundred seventy-nine of such code), but not
19 including clean-fuel vehicle refueling property relating to a qualified
20 hybrid vehicle as such vehicle is defined in subparagraph (E) of para-
21 graph six of subsection (p) of section six hundred six of this chapter.
22 (e) Qualified hybrid vehicles. The credit under this subdivision for
23 qualified hybrid vehicles shall equal two thousand dollars per vehicle
24 registered in this state[; provided, however, that such vehicle may not
25 qualify for both the credit under this paragraph and the clean-fuel
26 vehicle property credit permitted by paragraph (c) of this subdivision].
27 (f) Definitions. (i) The term "electric vehicle" means a qualified
28 electric vehicle within the meaning of subsection (c) of section thirty
29 of the internal revenue code.
30 (ii) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
31 refueling property" mean any such property which is qualified within the
32 meaning of subsections (c) and (d), respectively, of section one hundred
33 seventy-nine-A of the internal revenue code, but such terms shall not
34 include clean-fuel vehicle property or clean-fuel vehicle refueling
35 property relating to a qualified hybrid vehicle as such vehicle is
36 defined in subparagraph (E) of paragraph six of subsection (p) of
37 section six hundred six of this chapter.
38 (iii) The term "clean-fuel" means natural gas, liquefied petroleum
39 gas, hydrogen, electricity, and any other fuel which is at least
40 eighty-five percent, singly or in combination, methanol, ethanol, any
41 other alcohol, or ether.
42 (iv) The term "incremental cost" shall mean the excess of the cost of
43 an electric vehicle over the cost of a gasoline-powered vehicle which is
44 similar in size and style.
45 (v) The term "qualified hybrid vehicle" shall have the same meaning as
46 provided for under subparagraph (E) of paragraph six of subsection (p)
47 of section six hundred six of this chapter.
48 (i) Termination. Subparagraph (i) of paragraph (a) of this subdivision
49 shall not apply to property placed in service in taxable years beginning
50 after December thirty-first, two thousand [three] four and subparagraph
51 (ii) of paragraph (a) of this subdivision shall not apply to property
52 sold or first leased in taxable years beginning after December thirty-
53 first, two thousand [three] four.
54 § 4. Paragraphs 3, 4, 5, 6 and 9 of subsection (p) of section 606 of
55 the tax law, paragraphs 3, 4 and 6 as added by section 129 of part A of
56 chapter 389 of the laws of 1997, paragraph 5 and subparagraph (E) of
S. 6060--B 19 A. 9560--B
1 paragraph 6 as added, paragraph 6 as renumbered, and paragraph 9 as
2 amended by chapter 597 of the laws of 2002, are amended to read as
3 follows:
4 (3) Clean-fuel vehicle property. The credit under this subsection for
5 clean-fuel vehicle property shall equal sixty percent of the cost of any
6 such property
7 (A) for which a deduction is allowed under section one hundred seven-
8 ty-nine-A of the internal revenue code (determined without regard to the
9 limitations prescribed in paragraph one of subsection (b) of such
10 section or the election referred to in subsection (e) of such section
11 with respect to section one hundred seventy-nine of such code), but not
12 including clean-fuel vehicle property relating to a qualified hybrid
13 vehicle as such vehicle is defined in subparagraph (E) of paragraph six
14 of this subsection and
15 (B) which is installed in or manufactured as part of a motor vehicle
16 which is registered in this state,
17 (C) provided, however, the credit with respect to any such vehicle
18 shall not exceed five thousand dollars per vehicle for vehicles with a
19 gross vehicle weight rating of fourteen thousand pounds or less and ten
20 thousand dollars per vehicle for all other vehicles.
21 (4) Clean-fuel vehicle refueling property. The credit under this
22 subsection for clean-fuel vehicle refueling property shall equal fifty
23 percent of the cost of any such property
24 (A) which is located in this state and
25 (B) for which a deduction is allowed under section one hundred seven-
26 ty-nine-A of the internal revenue code (determined without regard to the
27 limitations prescribed in paragraph two of subsection (b) of such
28 section or the election referred to in subsection (e) of such section
29 with respect to section one hundred seventy-nine of such code), but not
30 including clean-fuel vehicle refueling property relating to a qualified
31 hybrid vehicle as such vehicle is defined in subparagraph (E) of para-
32 graph six of this subsection.
33 (5) Qualified hybrid vehicle. The credit under this subsection for
34 qualified hybrid vehicles shall equal two thousand dollars per vehicle
35 registered in this state[; provided, however, that such vehicle may not
36 qualify for both the credit under this paragraph and the clean-fuel
37 vehicle property credit permitted by paragraph three of this
38 subsection].
39 (6) Definitions. (A) The term "electric vehicle" means a qualified
40 electric vehicle within the meaning of subsection (c) of section thirty
41 of the internal revenue code.
42 (B) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
43 refueling property" mean any such property which is qualified within the
44 meaning of subsections (c) and (d), respectively, of section one hundred
45 seventy-nine-A of the internal revenue code, but such terms shall not
46 include clean-fuel vehicle property or clean-fuel vehicle refueling
47 property relating to a qualified hybrid vehicle as such vehicle is
48 defined in subparagraph (E) of this paragraph.
49 (C) The term "clean-fuel" means natural gas, liquefied petroleum gas,
50 hydrogen, electricity, and any other fuel which is at least eighty-five
51 percent, singly or in combination, methanol, ethanol, any other alcohol,
52 or ether.
53 (D) The term "incremental cost" shall mean the excess of the cost of
54 an electric vehicle over the cost of a gasoline-powered vehicle which is
55 similar in size and style.
S. 6060--B 20 A. 9560--B
1 (E) The term "qualified hybrid vehicle" means a motor vehicle, as
2 defined in section one hundred twenty-five of the vehicle and traffic
3 law, other than an electric vehicle (as such term is defined in subpara-
4 graph (A) of this paragraph), that:
5 (i) draws propulsion energy from both
6 (a) an internal combustion engine (or heat engine that uses combusti-
7 ble fuel); and
8 (b) an energy storage device; and
9 (ii) employs a regenerative vehicle braking system that recovers waste
10 energy to charge such energy storage device.
11 (9) Termination. This subsection shall not apply to property placed in
12 service in taxable years beginning after December thirty-first, two
13 thousand [three] four.
14 § 5. Paragraph 1 of subdivision (p) of section 1115 of the tax law, as
15 amended by chapter 597 of the laws of 2002, is amended to read as
16 follows:
17 (1) That portion of the receipts from the retail sale of a new alter-
18 native fuel vehicle which is attributable to the incremental cost of
19 such vehicle shall be exempt from the tax imposed under subdivision (a)
20 of section eleven hundred five of this article and that portion of the
21 consideration given or contracted to be given for such a vehicle which
22 is attributable to the incremental cost of such vehicle shall be exempt
23 from the compensating use tax imposed under section eleven hundred ten
24 of this article, but only where the incremental cost is separately stat-
25 ed in the written contract, if any, or on the bill rendered to the
26 purchaser; provided that the incremental cost of a two thousand through
27 two thousand two model year qualified hybrid vehicle need not be so
28 separately stated; provided, further, that the incremental cost of a
29 qualified hybrid vehicle purchased between March first, two thousand
30 four, and the date the chapter of the laws of two thousand four which
31 amends this paragraph becomes a law need not be so separately stated.
32 § 6. Subparagraph (iv) of paragraph 5 of subdivision (p) of section
33 1115 of the tax law, as amended by chapter 597 of the laws of 2002, is
34 amended to read as follows:
35 (iv) "incremental cost" means the increased sale price of an alterna-
36 tive fuel vehicle, above the sale price of a comparable motor vehicle
37 similar in all other respects but for the equipment necessary to render
38 it an alternative fuel vehicle, which increased sale price is attribut-
39 able to such vehicle being equipped to render it an alternative fuel
40 vehicle. [If no such comparable motor vehicle exists with respect to a
41 qualified hybrid vehicle, the incremental cost] Notwithstanding the
42 foregoing, the incremental cost of a qualified hybrid vehicle shall be
43 three thousand dollars;
44 § 7. Subdivision 21 of section 219 of part A of chapter 389 of the
45 laws of 1997, amending the tax law, the banking law, and other laws
46 relating to the 1997-1998 fiscal plan, as amended by chapter 597 of the
47 laws of 2002, is amended to read as follows:
48 (21) sections one hundred twenty-seven through one hundred thirty of
49 this act shall apply to property placed in service in taxable years
50 beginning on or after January 1, 1998, and section one hundred thirty-
51 one of this act shall take effect March 1, 1998 and shall apply to the
52 period commencing on such date and ending on February [29, 2004] 28,
53 2005, without interruption, when upon such ending date subdivision (p)
54 of section 1115 of the tax law shall be deemed REPEALED, provided howev-
55 er, that the commissioner of taxation and finance may take any action
56 with respect to the adoption, amendment, suspension or repeal of any
S. 6060--B 21 A. 9560--B
1 rule or regulation relating to sections one hundred twenty-seven through
2 one hundred thirty-two of this act, and may establish any procedure
3 necessary for the timely implementation thereof;
4 § 8. This act shall take effect immediately; provided, however, that
5 sections one through four of this act shall apply to taxable years
6 beginning on or after January 1, 2004; provided, further, that sections
7 five, six and seven of this act shall be deemed to have been in full
8 force and effect on and after March 1, 2004, and shall apply to sales
9 made, services rendered and uses occurring after March 1, 2004, although
10 made or occurring under a prior contract; and provided, further, that
11 the amendments to subdivision (p) of section 1115 of the tax law made by
12 sections five and six of this act shall not affect the repeal of such
13 subdivision and shall be deemed repealed therewith; and provided,
14 further, that the commissioner of taxation and finance shall be author-
15 ized on and after the date this act shall have become a law to adopt and
16 amend any rules or regulations and issue any procedures, forms or
17 instructions necessary to implement the provisions of this act on its
18 effective date.
19 PART E
20 Section 1. Subparagraph 1 of paragraph (d) of subdivision 1 of section
21 210 of the tax law, as amended by section 12 of part A of chapter 56 of
22 the laws of 1998, is amended to read as follows:
23 (1) The amount prescribed by this paragraph shall be for a taxpayer
24 which during the taxable year has:
25 (A) a gross payroll of twenty-five million dollars or more, ten thou-
26 sand dollars;
27 (B) a gross payroll of less than twenty-five million dollars, but more
28 than six million two hundred fifty thousand dollars [or more], [one]
29 five thousand [five hundred] dollars;
30 [(B)] (C) a gross payroll of [less than] no more than six million two
31 hundred fifty thousand dollars but more than one million dollars, four
32 hundred twenty-five dollars;
33 [(C)] (D) a gross payroll of no more than one million dollars but more
34 than five hundred thousand dollars, three hundred twenty-five dollars;
35 [(D)] (E) a gross payroll of no more than five hundred thousand
36 dollars [but more than two hundred fifty thousand dollars, two hundred
37 twenty-five dollars;
38 (E) a gross payroll of two hundred fifty thousand dollars or less]
39 (except as prescribed in clause (F) of this subparagraph), one hundred
40 dollars;
41 (F) a gross payroll of one thousand dollars or less, with total
42 receipts within and without this state of one thousand dollars or less,
43 and the average value of the assets of which are one thousand dollars or
44 less, eight hundred dollars.
45 § 2. This act shall take effect immediately and apply to taxable years
46 commencing in 2004 and 2005 and shall expire and be of no force and
47 effect for taxable years commencing on or after January 1, 2006.
48 PART F
49 Section 1. The tax law is amended by adding a new section 173-a to
50 read as follows:
51 § 173-a. Hearing rights upon notice and demand. 1. Applicability and
52 construction. (a) Applicability. Except as otherwise provided in this
S. 6060--B 22 A. 9560--B
1 section, this section shall apply with respect to any tax which is
2 administered by the commissioner and which is imposed by or authorized
3 to be imposed pursuant to this chapter or any other law. Unless a
4 different meaning is clearly required, any reference to "tax" or "taxes"
5 in this section shall be deemed also to refer to special assessments,
6 fees, interest, additions to tax, penalties or other impositions which
7 are administered by the commissioner.
8 (b) Exceptions to applicability. This section shall not apply to any
9 tax which is administered by the commissioner and which is imposed by or
10 authorized to be imposed pursuant to:
11 (i) Article ten of this chapter (taxable transfers - residents).
12 (ii) Article eleven of this chapter (tax on mortgages).
13 (iii) Article twelve of this chapter (tax on transfers of stock and
14 other corporate certificates).
15 (c) Construction. The provisions of this section shall supplement or
16 be in addition to the procedures relating to collection or adminis-
17 tration provided with respect to any tax covered by this section. Where
18 a provision of this section is inconsistent with any such provision with
19 respect to such tax, the provisions of this section shall apply.
20 2. Corporate and personal income taxes. With respect to any tax which
21 incorporates or otherwise utilizes the procedures set forth in part VI
22 of article twenty-two or article twenty-seven of this chapter,
23 provisions of law which authorize the issuance of a notice and demand
24 for an amount without the issuance of a notice of deficiency for such
25 amount, including any interest, additions to tax or penalties related
26 thereto, in cases of mathematical or clerical errors or failure to pay
27 tax shown on a return, or authorize the issuance of a notice of addi-
28 tional tax due, including any interest, additions to tax or penalties
29 related thereto, shall be construed as specifically denying and modify-
30 ing the right to a hearing with respect to any such notice and demand or
31 notice of additional tax due for purposes of subdivision four of section
32 two thousand six of this chapter. Any such notice and demand or notice
33 of additional tax due shall not be construed as a notice which gives a
34 person the right to a hearing under article forty of this chapter.
35 3. Sales and compensating use and miscellaneous taxes. With respect to
36 any tax to which this section applies and which is not covered by subdi-
37 vision two of this section:
38 (a) Final determination. The amount of tax which a return or report
39 shows to be due, the amount of tax which a return or report would have
40 shown to be due but for a mathematical or clerical error (including,
41 with respect to a tax payable by the purchase of stamps, the amount of
42 stamps purchased) or the amount of penalty and any interest due for
43 failing to file a return or report or to pay or pay over any tax (or to
44 pay for any stamps purchased) to the commissioner within the time
45 required by or pursuant to any such tax (but not including any such
46 penalty or interest attributable to any amount of tax with respect to
47 which a notice of determination is required to be issued) shall be
48 deemed to be finally determined to be due not later than on the date of
49 the filing of such return or report (including any amended return or
50 report showing an increase of tax or in the case of the purchase of
51 stamps, such date of purchase). Such amount of tax, penalty or interest
52 shall be paid upon notice and demand and shall be assessed, collected
53 and paid in the manner provided for in each of the several taxes covered
54 under this subdivision and such notice and demand shall not be consid-
55 ered as a notice of determination for purposes of the taxes covered
56 under this subdivision. If a notice of determination has been mailed
S. 6060--B 23 A. 9560--B
1 with respect to a tax covered under this subdivision, the amount of the
2 determination shall be deemed to be finally and irrevocably fixed on the
3 date specified in any such tax if no petition to the division of tax
4 appeals is filed, or, if a petition is filed, then upon the date when a
5 determination or decision rendered in the division of tax appeals estab-
6 lishing the amount of the notice of determination becomes final pursuant
7 to article forty of this chapter.
8 (b) Notice and demand. (1) The commissioner shall, as soon as practi-
9 cable, give notice to each person liable for any amount of tax, addition
10 to tax, penalty or interest, which has been finally determined to be due
11 or which has been finally and irrevocably fixed, as the case may be, but
12 remains unpaid, stating the amount and demanding payment thereof. Such
13 notice shall be left at the dwelling or usual place of business of such
14 person or shall be sent by mail to such person's last known address.
15 Except where the commissioner determines that collection would be jeop-
16 ardized by delay and the applicable tax contains provisions authorizing
17 a jeopardy procedure, if any tax is finally determined to be due or is
18 finally and irrevocably fixed prior to the last date (including any date
19 fixed by extension) prescribed for payment of such tax, payment of such
20 tax shall not be demanded until after such date. If the commissioner
21 finds that the determination, assessment or collection of tax, addition
22 to tax, penalty or interest is in jeopardy and the applicable tax
23 contains provisions authorizing procedures regarding early determi-
24 nation, the commissioner may immediately determine the amount of such
25 tax, addition to tax, penalty or interest (whether before or after the
26 due date of any return or report required to show such tax, addition to
27 tax, penalty or interest) and assess the same and give notice and demand
28 for the payment thereof.
29 (2) If notice and demand is made for payment of any amount under
30 subparagraph one of this paragraph, and if such amount is paid within
31 twenty-one calendar days (ten business days if the amount for which such
32 notice and demand is made equals or exceeds one hundred thousand
33 dollars) after the date of such notice and demand, interest under the
34 applicable tax on the amount so paid shall not be imposed for the period
35 after the date of such notice and demand.
36 (c) Hearing rights upon notice and demand. Provisions of law which
37 authorize the issuance of a notice and demand for an amount without the
38 issuance of a notice of determination for such amount, including any
39 interest or penalties related thereto, shall be construed as specif-
40 ically denying and modifying the right to a hearing with respect to any
41 such notice and demand for purposes of subdivision four of section two
42 thousand six of this chapter in cases of mathematical or clerical errors
43 or failure to pay the tax due shown on the return or for any stamps
44 purchased, and any interest or penalties related thereto. Any such
45 notice and demand shall not be construed as a notice which gives a
46 person the right to a hearing under article forty of this chapter.
47 § 2. Subsection (d) of section 681 of the tax law, as amended by chap-
48 ter 1011 of the laws of 1962, is amended to read as follows:
49 (d) Exceptions for mathematical or clerical errors.--If a mathematical
50 or clerical error appears on a return (including an overstatement of the
51 credit for income tax withheld at the source, or of the amount paid as
52 estimated income tax), the [tax commission] commissioner shall notify
53 the taxpayer that an amount of tax in excess of that shown upon the
54 return is due, and that such excess has been assessed. Such notice shall
55 not be considered as a notice of deficiency for the purposes of this
56 section, subsection (f) of section six hundred eighty-seven (limiting
S. 6060--B 24 A. 9560--B
1 credits or refunds after petition to the [tax commission] division of
2 tax appeals), [or] subsection (b) of section six hundred eighty-nine
3 (authorizing the filing of a petition with the [tax commission] division
4 of tax appeals based on a notice of deficiency), or article forty of
5 this chapter, nor shall such assessment or collection be prohibited by
6 the provisions of subsection (c).
7 § 3. Subsection (a) of section 682 of the tax law, as amended by chap-
8 ter 690 of the laws of 1964, is amended to read as follows:
9 (a) Assessment date.--The amount of tax which a return shows to be
10 due, or the amount of tax which a return would have shown to be due but
11 for a mathematical or clerical error, shall be deemed to be assessed on
12 the date of filing of the return (including any amended return showing
13 an increase of tax). In the case of a return properly filed without
14 computation of tax, the tax computed by the [tax commission] commission-
15 er shall be deemed to be assessed on the date on which payment is due.
16 If a notice of deficiency has been mailed, the amount of the deficiency
17 shall be deemed to be assessed on the date specified in subsection (b)
18 of section six hundred eighty-one if no petition to the [tax commission]
19 division of tax appeals is filed, or if a petition is filed, then upon
20 the date when a determination or decision [of] rendered in the [tax
21 commission] division of tax appeals establishing the amount of the defi-
22 ciency becomes final. If an amended return or report filed pursuant to
23 section six hundred fifty-nine concedes the accuracy of a federal change
24 or correction, any deficiency in tax under this article resulting there-
25 from shall be deemed to be assessed on the date of filing such report or
26 amended return, and such assessment shall be timely notwithstanding
27 section six hundred eighty-three. If a notice of additional tax due, as
28 prescribed in subsection (e) of section six hundred eighty-one, has been
29 mailed, the amount of the deficiency shall be deemed to be assessed on
30 the date specified in such subsection unless within thirty days after
31 the mailing of such notice a report of the federal change or correction
32 or an amended return, where such return was required by section six
33 hundred fifty-nine, is filed accompanied by a statement showing wherein
34 such federal determination and such notice of additional tax due are
35 erroneous. Any amount paid as a tax or in respect of a tax, other than
36 amounts withheld at the source or paid as estimated income tax, shall be
37 deemed to be assessed upon the date of receipt of payment, notwithstand-
38 ing any other provisions.
39 § 4. Subsection (c) of section 684 of the tax law, as added by chapter
40 1011 of the laws of 1962, is amended to read as follows:
41 (c) Exception for mathematical or clerical error.--No interest shall
42 be imposed on any underpayment of tax due solely to mathematical or
43 clerical error if the taxpayer files a return within the time prescribed
44 in this article (including any extension of time) and pays the amount of
45 underpayment within three months after the due date of such return, as
46 it may be extended.
47 § 5. Subsection (d) of section 1081 of the tax law, as added by chap-
48 ter 188 of the laws of 1964, is amended to read as follows:
49 (d) Exceptions for mathematical or clerical errors.---If a mathemat-
50 ical or clerical error appears on a return (including an overstatement
51 of the amount paid as estimated tax), the [tax commission] commissioner
52 shall notify the taxpayer that an amount of tax in excess of that shown
53 upon the return is due, and that such excess has been assessed. Such
54 notice shall not be considered as a notice of deficiency for the
55 purposes of this section, subsection (f) of section one thousand eight-
56 y-seven (limiting credits or refunds after petition to the [tax commis-
S. 6060--B 25 A. 9560--B
1 sion] division of tax appeals), [or] subsection (b) of section one thou-
2 sand eighty-nine (authorizing the filing of a petition with the [tax
3 commission] division of tax appeals based on a notice of deficiency), or
4 article forty of this chapter, nor shall such assessment or collection
5 be prohibited by the provisions of subsection (c).
6 § 6. Paragraph 1 of subsection (a) of section 1082 of the tax law, as
7 amended by chapter 788 of the laws of 1982, is amended to read as
8 follows:
9 (1) The amount of tax which a return shows to be due, or the amount of
10 tax which a return would have shown to be due but for a mathematical or
11 clerical error, shall be deemed to be assessed on the date of filing of
12 the return (including any amended return showing an increase of tax). If
13 a notice of deficiency has been mailed, the amount of the deficiency
14 shall be deemed to be assessed on the date specified in subsection (b)
15 of section one thousand eighty-one if no petition to the [tax commis-
16 sion] division of tax appeals is filed, or if a petition is filed, then
17 upon the date when a determination or decision [of] rendered in the [tax
18 commission] division of tax appeals establishing the amount of the defi-
19 ciency becomes final.
20 § 7. Subsection (c) of section 1084 of the tax law, as added by chap-
21 ter 188 of the laws of 1964, is amended to read as follows:
22 (c) Exception for mathematical or clerical error.--- No interest shall
23 be imposed on any underpayment of tax due solely to mathematical or
24 clerical error if the taxpayer files a return within the time prescribed
25 in article nine[, nine-a, nine-b or nine-c] or nine-A (including any
26 extension of time) and pays the amount of underpayment within three
27 months after the due date of such return, as it may be extended.
28 § 8. This act shall take effect immediately and shall apply to notice
29 and demands and notices of additional tax due issued on or after Decem-
30 ber 1, 2004.
31 PART G
32 Section 1. Section 51 of chapter 298 of the laws of 1985, amending the
33 tax law relating to the franchise tax on banking corporations imposed by
34 the tax law, authorized to be imposed by any city having a population of
35 one million or more by chapter 772 of the laws of 1966 and imposed by
36 the administrative code of the city of New York and relating to other
37 provisions of the tax law, chapter 883 of the laws of 1975 and the
38 administrative code of the city of New York which relates to such fran-
39 chise tax, as amended by section 1 of part G3 of chapter 62 of the laws
40 of 2003, is amended to read as follows:
41 § 51. This act shall take effect immediately and shall apply to taxa-
42 ble years beginning on or after January 1, 1985, except that:
43 (a) sections one through eight shall not apply to taxable years begin-
44 ning on or after January 1, [2005] 2006;
45 (b) sections nine, twelve, the amendment made to paragraph 9 of
46 subsection (a) of section 1452 of the tax law by section thirteen,
47 sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
48 twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
49 of subdivision (a) of section 11-640 of the administrative code of the
50 city of New York by section thirty-three, sections thirty-five, thirty-
51 six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
52 corporations other than savings banks and savings and loan associations
53 for taxable years beginning on or after January 1, [2005] 2006;
S. 6060--B 26 A. 9560--B
1 (c) sections twenty-one, twenty-two, twenty-four, forty-one and
2 forty-two shall not apply to corporations other than savings banks and
3 savings and loan associations for taxable years beginning on or after
4 January 1, [2005] 2006, provided, however, that the provisions of such
5 sections which relate to the alternative minimum tax measured by taxable
6 assets shall continue to apply to all taxpayers for taxable years begin-
7 ning on or after January 1, [2005] 2006;
8 (d) the amendment to the section heading and the opening paragraph of
9 section 11-643.3 of the administrative code of the city of New York made
10 by section forty-three shall not apply to corporations other than
11 savings banks and savings and loan associations for taxable years begin-
12 ning on or after January 1, [2005] 2006 with respect to those provisions
13 of such section 11-643.3 which relate to the basic tax measured by
14 entire net income; and
15 (e) section twenty-eight, and the addition of new section 11-643.5 of
16 the administrative code of the city of New York made by section forty-
17 four shall not apply to corporations other than savings banks and
18 savings and loan associations for taxable years beginning on or after
19 January 1, [2005] 2006, provided, however, that the provisions of such
20 sections which relate to the alternative minimum taxes measured by
21 assets, issued capital stock and one hundred twenty-five dollars shall
22 continue to apply to all taxpayers for taxable years beginning on or
23 after January 1, [2005] 2006.
24 § 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
25 laws of 1987, amending the tax law and the environmental conservation
26 law, constituting the business tax reform and rate reduction act of
27 1987, as amended by section 2 of part G3 of chapter 62 of the laws of
28 2003, are amended to read as follows:
29 (d) The provisions of section sixty-seven except insofar as it amends
30 paragraph 10 of subsection (b) of section 1453 of the tax law, seventy-
31 one and seventy-four shall apply to taxable years beginning after Decem-
32 ber 31, 1986, provided, however, that new paragraphs 11 and 12 of
33 subsection (b) of section 1453 of the tax law as added by section
34 sixty-seven of this act, the amendments made by section seventy-one of
35 this act, and new subsection (i) of section 1453 of the tax law as added
36 by section seventy-four of this act shall not apply to taxable years
37 beginning on or after January 1, [2005] 2006;
38 (f) The provisions of section one hundred four of this act shall apply
39 to taxable years beginning after December 31, 1986, and shall not apply
40 to corporations other than savings banks and savings and loan associ-
41 ations for taxable years beginning on or after January 1, [2005] 2006,
42 provided, however, that the provisions of such section which relate to
43 the alternative minimum tax measured by taxable assets shall continue to
44 apply to all taxpayers for taxable years beginning on or after January
45 1, [2005] 2006.
46 § 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the laws
47 of 1988, amending the tax law and the administrative code of the city of
48 New York relating to the imposition of taxes in the city of New York, as
49 amended by section 3 of part G3 of chapter 62 of the laws of 2003, are
50 amended to read as follows:
51 (c) The provisions of sections one, thirty-one, thirty-two, thirty-
52 three, thirty-six, thirty-seven, forty through forty-five, forty-seven
53 and forty-eight shall apply to taxable years beginning after December
54 31, 1986, provided, however, that the amendments made by sections thir-
55 ty-six and forty-one of this act, and new subdivision (i) of section
56 11-641 of the administrative code of the city of New York as added by
S. 6060--B 27 A. 9560--B
1 section forty-four of this act shall not apply to taxable years begin-
2 ning on or after January 1, [2005] 2006;
3 (d) The provisions of section forty-six shall apply to taxable years
4 beginning after December 31, 1986, and shall not apply to corporations
5 other than savings banks and savings and loan associations for taxable
6 years beginning on or after January 1, [2005] 2006, provided, however,
7 that the provisions of such section which relate to the alternative
8 minimum tax measured by taxable assets shall continue to apply to all
9 taxpayers for taxable years beginning on or after January 1, [2005]
10 2006;
11 § 4. Section 1452 of the tax law is amended by adding a new subsection
12 (k) to read as follows:
13 (k) Transitional provisions relating to the enactment and implementa-
14 tion of the federal Gramm-Leach-Bliley act. (1) Notwithstanding anything
15 to the contrary contained in this section, a corporation that was in
16 existence before January first, two thousand four and was subject to tax
17 under article nine-A of this chapter for its last taxable year beginning
18 before January first, two thousand four, shall continue to be taxable
19 under article nine-A for all taxable years beginning on or after January
20 first, two thousand four and before January first, two thousand six. The
21 preceding sentence shall not apply to any taxable year during which such
22 corporation is a banking corporation described in paragraphs one through
23 eight of subsection (a) of this section. Notwithstanding anything to
24 the contrary contained in this section, a banking corporation that was
25 in existence before January first, two thousand four and was subject to
26 tax under this article for its last taxable year beginning before Janu-
27 ary first, two thousand four, shall continue to be taxable under this
28 article for all taxable years beginning on or after January first, two
29 thousand four and before January first, two thousand six. Provided,
30 however, that nothing in this subsection shall prohibit a corporation
31 that elected pursuant to subsection (d) of this section to be taxable
32 under article nine-A of this chapter from revoking that election in
33 accordance with such subsection (d).
34 For purposes of this paragraph, a corporation shall be considered to
35 be subject to tax under article nine-A of this chapter for a taxable
36 year if such corporation was not a taxpayer but was properly included in
37 a combined report filed pursuant to section two hundred eleven of this
38 chapter for such taxable year and a corporation shall be considered to
39 be subject to tax under this article for a taxable year if such corpo-
40 ration was not a taxpayer but was properly included in a combined return
41 filed pursuant to subsection (f) or (g) of section fourteen hundred
42 sixty-two of this article for such taxable year. A corporation that was
43 in existence before January first, two thousand four but first becomes a
44 taxpayer in a taxable year beginning on or after January first, two
45 thousand four and before January first, two thousand six, shall be
46 considered for purposes of this paragraph to have been subject to tax
47 under article nine-A of this chapter for its last taxable year beginning
48 before January first, two thousand four, if such corporation would have
49 been subject to tax under such article for such taxable year if it had
50 been a taxpayer during such taxable year. A corporation that was in
51 existence before January first, two thousand four, but first becomes a
52 taxpayer in a taxable year beginning on or after January first, two
53 thousand four and before January first, two thousand six, shall be
54 considered for purposes of this paragraph to have been subject to tax
55 under this article for its last taxable year beginning before January
56 first, two thousand four if such corporation would have been subject to
S. 6060--B 28 A. 9560--B
1 tax under this article for such taxable year if it had been a taxpayer
2 during such taxable year.
3 (2) Notwithstanding anything to the contrary contained in this
4 section, a corporation formed on or after January first, two thousand
5 four and before January first, two thousand six may elect to be subject
6 to tax under this article or under article nine-A of this chapter for
7 its first taxable year beginning on or after January first, two thousand
8 four and before January first, two thousand six in which either (i)
9 sixty-five percent or more of its voting stock is owned or controlled,
10 directly or indirectly by a financial holding company, provided the
11 corporation whose voting stock is so owned or controlled is principally
12 engaged in activities that are described in section 4(k)(4) or 4(k)(5)
13 of the federal bank holding company act of nineteen hundred fifty-six,
14 as amended and the regulations promulgated pursuant to the authority of
15 such section, or (ii) it is a financial subsidiary.
16 An election under this paragraph may not be made by a corporation
17 described in paragraphs one through eight of subsection (a) of this
18 section or in subsection (e) of this section. In addition, an election
19 under this paragraph may not be made by a corporation that is a party to
20 a reorganization, as defined in subsection (a) of section three hundred
21 sixty-eight of the internal revenue code of nineteen eighty-six, as
22 amended, of a corporation described in paragraph one of this subsection
23 if both corporations were sixty-five percent or more owned or
24 controlled, directly or indirectly, by the same interests at the time of
25 the reorganization. An election under this paragraph must be made by the
26 taxpayer on or before the due date for filing its return (determined
27 with regard to extensions of time for filing) for the applicable taxable
28 year. The election to be taxed under article nine-A of this chapter
29 shall be made by the taxpayer by filing the report required pursuant to
30 section two hundred eleven of this chapter and the election to be taxed
31 under this article shall be made by the taxpayer by filing the return
32 required pursuant to section fourteen hundred sixty-two of this article.
33 Any election made pursuant to this paragraph shall be irrevocable and
34 shall apply to each subsequent taxable year beginning on or after Janu-
35 ary first, two thousand four and before January first, two thousand six,
36 provided that the stock ownership requirements described in subparagraph
37 (i) of this paragraph are met or such corporation described in subpara-
38 graph (ii) of this paragraph continues as a financial subsidiary.
39 (3) For purposes of this section, a financial subsidiary means a
40 corporation (i) sixty-five percent or more of whose voting stock is
41 owned or controlled, directly or indirectly by a banking corporation
42 described in paragraph one, two or three of subsection (a) of this
43 section and (ii) is described in section 5136A(g) of the revised stat-
44 utes of the United States or section forty-six of the federal deposit
45 insurance act. For purposes of this article, the term "banking corpo-
46 ration" shall include a corporation electing to be taxed under this
47 article pursuant to paragraph two of this subsection for so long as such
48 election shall be in effect.
49 § 5. Subparagraph (iv) of paragraph 2 of subsection (f) of section
50 1462 of the tax law, as amended by section 5 of part G3 of chapter 62 of
51 the laws of 2003, is amended to read as follows:
52 (iv) (A) Notwithstanding any provision of this paragraph, any bank
53 holding company exercising its corporate franchise or doing business in
54 the state may make a return on a combined basis without seeking the
55 permission of the commi